PayPal Introduces PYUSD: A Stablecoin Tied to US Dollar Value and Backed by Robust Financial Structure”
On Monday, PayPal, a provider of financial infrastructure, unveiled PayPal USD (PYUSD), a stablecoin that is pegged to the value of the US dollar.
Since stablecoins are tethered to the value of fiat currencies and are normally maintained at a 1:1 ratio, they are thought to be less volatile than well-known choices like Bitcoin and Ethereum.
According to the corporation, PayPal USD is “100% backed by US Dollars deposited, short-term US Treasuries, and cash equivalents of the same kind.” PayPal USD was created by the PayPal US Dollar Paxos Trust corporation.
Users of PayPal USD will be able to securely move funds between PayPal and third-party wallets, send and receive payments between themselves and others using the stablecoin, and pay with PayPal USD. They will also be able to turn any cryptocurrency that PayPal supports into stablecoin.
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“PayPal USD has been designed to facilitate frictionless payments in a digital environment, enabling quick transfers of value for inexperienced users, supporting friends and family, sending remittances or international payments, empowering developers and creators with direct flow, and driving continuous expansion in the digital realm, boasting the assets of the world’s biggest brands,” the company said in a press release. Venmo support for PYUSD is anticipated soon.
In nations where the value of the base currency is falling, residents often convert their savings into somewhat more stable cryptocurrencies, such as Tether (USDT) and USD Coin (USDC). However, concerns are raised over the full backing of these assets and the issuers’ lack of transparency.
When the price of Terra USD (UST) stablecoin fell by approximately 90% in 2022, this issue gained attention.
The recently launched stablecoin from PayPal is not yet listed or monitored by the well-known cryptocurrency analytics service CoinMarketCap.
(Note: Due to their precise technical connotations, words like “stablecoin,” “cryptocurrency,” and “fiat currency” have been kept in English.)
